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BEFORE THE CANNABIS CONTROL DIVISION

FOR THE STATE OF NEW MEXICO

IN THE MATTER OF:

Bliss Farm, LLC d/b/a Love 420 d/b/a/Grown Farm, Case No. 2023-012
License Nos. CCD-2023-0138; CCD-VICE-2023-0040; and
CCD-VICE-2022-0061

Respondent.

FINAL DECISION AND ORDER

THIS MATTER having come before the New Mexico Regulation and Licensing

Department (the “Department”) for consideration and decision on December 20, 2023, upon

completion of an evidentiary hearing held on October 19, 2023, in Court Room 2 of the Seventh

Judicial District Court House, 903 5th St., Estancia, NM 87106; the State of New Mexico having

been represented at the hearing by Cannabis Control Division (“Division”) Counsel, Robert Sachs

(“Administrative Prosecutor”); Respondent Bliss Farm, LLC d/b/a Love 420 d/b/a Grown Farms

having been represented by Adam D. Oakey, 500 17th St. NW, Albuquerque, NM 87104; and the

duly appointed Hearing Officer Max Shepherd (“Hearing Officer”) having timely submitted to the

Department a written report setting forth his findings of fact, in accordance with 61-1-7(A) NMSA

1978, of the Uniform Licensing Act, the Department issues the following:

PRELIMINARY MATTERS

On August 14, 2023, Clay Bailey, Deputy Superintendent of the Regulation and Licensing

Department (RLD) for the State of New Mexico, acting under the authority of Linda Trujillo, then

Superintendent of the RLD, issued a Notice of Contemplated Action (“NCA”) upon a finding of

probable cause that the Respondents had violated the following provisions of the Cannabis

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Regulation Act (“Act”), NMSA 1978, §§26-2C-1 to -42 (2021) and the New Mexico

Administrative Code (“NMAC”):

1. Non-compliance with Local and State Laws in violation of 16.8.2.8 (A) NMAC;

2. No Usage of Required Track and Trace Software in violation of 16.8.2.8 (J) NMAC;

3. Improper Record of Testing in violation of 16.8.2.40 (G)(1)(d) NMAC;

4. Improper Security and Limited Access Requirements in violation of 16.8.2.10 NMAC;

5. Improper Safety and Health Requirements in violation of 16.8.2.27 (F) NMAC;

6. Non-Operational Digital Surveillance System in violation of 16.8.2.10 (D)-(G) NMAC;

7. No Security Alarm System in violation of 16.8.2.10 (A)-(C) NMAC;

8. No Cultivation Plan in violation of 16.8.2.27 (B) NMAC;

9. No Lighting Diagram in violation of 16.8.2.27 (C) NMAC;

10. No Pest Management Plan in violation of 16.8.2.27 (D) NMAC;

11. Improper Chain of Custody Procedures in violation of 16.8.2.12 NMAC;

12. No Employee Training Materials Onsite in violation of 16.8.2.26 (B)(1) NMAC;

13. No Employee Food Handler’s Cards in violation of 16.8.2.26 (B)(2) NMAC;

14. No Recall Plan Onsite in violation of 16.8.2.11 NMAC;

15. No Remediation Plan Onsite in violation 16.8.2.26 NMAC;

16. No Cannabis Wastage Plan Onsite in violation of 16.8.2.27 (E) NMAC; and

17. No Required Scales Present Onsite in violation of 16.8.2.27 (A)(4) NMAC.

The Respondent timely filed a request for hearing.

HEARING

Exhibits:

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The Division tendered the following pre-marked exhibits some of which were withdrawn

without renumbering the remaining exhibits that were admitted:

1. A copy of Bliss Farm, LLC’s Cannabis Producer’s License No. CCD-2023-0138;

2. A copy of Love 420’s Vertically Integrated Cannabis Establishment License, No. CCD-

VICE-2023-0040;

3. A copy of Grown Farm, LLC’s Vertically Integrated Cannabis Establishment License,

No. CCD-VICE-2022-0061;

4. A copy of Bliss Farm’s Cannabis Producer’s license application;

5. A copy of the Love 420’s Vertical Integrated Cannabis Establishment license

application;

6. A copy of the Grown Farm’s Vertical Integrated Cannabis Establishment license

application;

7. A copy of the Production Facility Inspection Checklist prepared 6/12/2023 by Charles

Nuanes following an inspection of Respondents’ facility at 102 Howell Rd., Estancia,

NM. 26 violations of the Act and the NMAC were found during this inspection.

8. A copy of a Track and Trace printout of the bulk inventory, sales, transfers, manifests,

and quality assurance reports Respondent Love 420 was required to complete under its

manufacturer license from 4/01/2022 to 9/21/2023. [A review of these printouts shows

that Respondent Love 420 did not enter any information in any of these track and trace

categories under its manufacturer license during this period.]

9. A copy of a Track and Trace printout of the bulk inventory, sales, transfers, manifests,

and quality assurance reports Respondent Love 420 was required to complete under its

retail license from 4/01/2022 to 9/21/2023. [A review of these printouts shows that

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Respondent Love 420 did not enter any information in any of these track and trace

categories under its retail license during this period.]

10. Withdrawn by the Division.

11. Withdrawn by the Division.

12. A copy of the Track and Trace printout of the bulk inventory, sales, transfers, manifests,

and quality assurance reports that Respondent Grown Farm, LLC was required to

complete under its production license from 4/1/2022 to 9/21/2023. [A review of these

printouts shows that Respondent Grown Farm, LLC did not enter any information in

any of these track and trace categories under its production license during this period.]

13. A copy of the Track and Trace printout of the bulk inventory, sales, transfers,

manifests, and quality assurance reports that Respondent Grown Farm, LLC was

required to complete under its manufacturer license from 4/1/2022 to 9/21/2023. [A

review of these printouts shows that Respondent Grown Farm, LLC did not enter any

information in any of these track and trace categories under its manufacturer license

during this period.]

14. A copy of the Track and Trace printout of the bulk inventory, sales, transfers, manifests,

and quality assurance reports that Respondent Grown Farm, LLC, was required to

complete under its retail license from 4/1/2022 to 9/21/2023. [A review of these

printouts shows that Respondent Grown Farm, LLC, did not enter any information in

any of these track and trace categories under its retail license during this period.]

15. A photograph of Respondents’ green houses in Estancia.

16. Copies of photographs of Respondents’ growing facilities in Estancia.

17. Withdrawn by the Division.

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18. Withdrawn by the Division.

19. Copies of a photograph of cannabis plants hung up to dry in one of Respondents’

greenhouses along with photographs of trimmed buds laid out to dry prior to packaging.

20. Copies of photographs of areas in Respondents’ facilities where people had apparently

been cooking food, living, and leaving trash.

21. Copies of photographs of a small electric hot water heater, unsecured CO2 containers,

an exposed electrical panel and wiring, and a propane-fired wok all located in

Respondents’ facilities.

22. A copy of the Notice of Contemplated Action upon which this hearing was based.

23. A copy of the Petition for a Preliminary Injunction that had been prepared for filing.

24. A copy of the CCD’s post-hearing Production Facility Inspection Checklist of

Respondents’ facility dated 10/19/2023. A review of this reports establishes that 19

violations of the Act and NMAC still existed some 4 months after the initial inspection

in June of 2023.

The Respondent did not tender any exhibits.

Witnesses:

1. The Division called one witness, Compliance Officer Nick Mourning.

2. The Respondent did not call any witness.

FINDINGS OF FACT

The Department makes these Findings of Fact:

1. During opening statements counsel for the Respondents represented to the court that

the Respondents had corrected virtually every violation cited in the NCA. Based upon these

representations the Hearing Officer adjourned the hearing to allow the parties to discuss

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settling the case. After discussing this possibility, the parties agreed to proceed with the

hearing so the parties could put their evidence and arguments on the record. However, the

parties also agreed that they would reconvene the hearing after a team of CCD compliance

officers had re-inspected the Respondents’ facilities if a re-inspection did not lead to

settlement of the case and it was necessary to introduce additional evidence.

2. Exhibit 24, which was admitted without objection, is the re-inspection report prepared

by compliance officers Charles Nuanes and Wellington Guzman. The report clearly

establishes that 19 violation of the Act and NMAC still existed as of 10/19/2023, immediately

after the hearing had been adjourned, and that Respondents’ representations as to the steps

they had taken to bring their operation into compliance were contrary to fact. Based on this

evidence the CCD indicated to the Respondents through an email that the CCD was not

interested in pursuing a settlement of the case. In response, the Respondents did not tender

any further evidence, and Respondents declined the offer of an opportunity to submit

proposed findings of fact and conclusions of law; no further hearing on the matter was held.

3. The first witness called by the Division was Nick Mourning. Mr. Mourning testified

that he supervised all compliance officers working for CCD and reviewed all compliance

officer’s reports.

4. Mr. Mourning identified Exhibit 7 as a Production Facility Inspection Report prepared

by Charles Nuanes and Wellington Guzman on 6/12/ 2023 after inspecting Respondents’

facility. The inspection report identified 26 violations of the Act and NMAC. The inspectors

also observed approximately 50,000 plants growing on Respondents’ facility.

5. Mr. Mourning testified that all licensees are required to accurately report all cannabis

products “from seed to sale” in the Track and Trace system, also known as BioTrack.

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6. Mr. Mourning identified Exhibit 8 as a true and accurate copy of the BioTrack printout

related to Respondent Love 420’s manufacturer license from 4/1/2022 to 9/21/2023, a period

of approximately 17 months. This report should have tracked all Bulk Inventory reported, all

sales, all transfers of cannabis products, all sales or purchase manifests, and all quality

assurance tests performed during this period by this licensee. Mr. Mourning also testified

that a licensee like Love 420 is required to have all cannabis products tested before any

cannabis product is sold or transferred.

7. As Mr. Mourning testified and as Exhibit 8 clearly shows, Respondent Love 420 failed

to report any of the required information related to its regulated manufacturer license

activities in any of the identified BioTrack categories during this period.

8. Mr. Mourning identified Exhibit 9 as a true and accurate printout of the BioTrack

reports related to Respondent Love 420’s retail license from 4/1/2022 to 9/21/2023, a period

of approximately 17 months. This report should have tracked all Bulk Inventory reported, all

sales, all transfers of cannabis products, all sales or purchase manifests, and all quality

assurance tests ordered during this period. However, as Mr. Mourning testified and as

Exhibit 9 clearly shows, Respondent Love 420 failed to report any of the required

information related to its regulated retail license activities in any of the identified BioTrack

categories during this 17-month period.

9. Mr. Mourning identified Exhibit 12 as a true and accurate printout of the BioTrack

reports related to Respondent Grown Farm’s production license from 4/1/2022 to 9/21/2023,

a period of approximately 17 months. This report should have tracked all Bulk Inventory

reported, all sales, all transfers of cannabis products, all sales or purchase manifests, quality

assurance tests ordered during this period.

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10. Specifically, Mr. Mourning testified that since this Exhibit related to Respondent

Grown Farm’s production license the report should have contained the number of plants

growing, the number of flowering plants, the number of vegetative plants, the number of

plants out to wastage, etc.

11. Mr. Mourning testified that based on the inspection of Respondent’s production

facility he expected to see approximately 15,000 mature plants listed in Exhibit 12 and up to

15,000 vegetative plants listed.

12. However, as Mr. Mourning testified and as Exhibit 12 clearly shows, Respondent

Grown Farm failed to report any of the required information related to its regulated cannabis

production license activities in any of the identified BioTrack categories in Exhibit 12 during

this 17-month period.

13. Mr. Mourning identified Exhibit 13 as a true and accurate printout of the BioTrack

reports related to Respondent Grown Farm’s manufacturing license from 4/1/2022 to

9/21/2023, a period of approximately 17 months. This report, like those referenced above,

should have tracked all Bulk Inventory reported, all sales of Respondent Grown Farm’s

manufacturing license activity, as well as all transfers of cannabis products, all sales or

purchase manifests and all quality assurance tests ordered during this period. As Mr.

Mourning testified and as Exhibit 13 clearly shows, Respondent Grown Farm completely

failed to report any of the required information related to its cannabis manufacturing license

activities in any of the identified BioTrack categories during this 17-month period.

14. Mr. Mourning identified Exhibit 14 as a true and accurate printout of the BioTrack

reports related to Respondent Grown Farm’s retail license from 4/1/2022 to 9/21/2023, a

period of approximately 17 months. This report should have tracked all Bulk Inventory

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reported, all sales, all transfers of cannabis, all sales or purchase manifests, and all quality

assurance tests ordered during this period. As Mr. Mourning testified and as Exhibit 14

clearly shows, Respondent failed to report any of the required information related to its

cannabis retail license in any of the identified BioTrack categories during this 17-month

period.

15. Mr. Mourning identified Exhibit 15 as a collection of photographs of Respondents’

facilities in Estancia, NM including photographs of the numerous green houses on the

property at Respondents’ location in Estancia and numerous greenhouses in which

Respondents were growing marijuana plants.

16. Specifically, Mr. Mourning, who testified that he had visited Respondents’ facilities in

Estancia three times over a three-month period, identified mature plants and drying plants in

these photographs.

17. Mr. Mourning also testified that he observed more plants in production during each of

his subsequent visits to Respondents’ facilities, but he did not observe any signs that

Respondents were harvesting any plants, although Exhibit 19 clearly show that harvesting

had been occurring even if not observed by Mr. Mourning.

18. Mr. Mourning identified Exhibit 16 as photographs of a number of greenhouses he

observed on Respondents’ property. Mr. Mourning testified that Respondents had 111

greenhouses on the property with 250 to 300 plants growing in each greenhouse. However,

not all of the greenhouses were fully planted until Mr. mourning’s third visit.

19. Mr. Mourning did not know how many plants Respondents had been permitted to

grow through their multiple licenses, but Mr. Mourning was informed by other CCD

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compliance officers that Respondents were several thousand plants over their permitted

number.

20. Mr. Mourning identified Exhibit 19 as photographs of harvested plants hung up to

dry in one of Respondents’ greenhouses, along with photographs of trimmed buds spread out

to dry before packaging in another of Respondents’ greenhouses.

21. Mr. Mourning identified Exhibit 20 as photographs of the unsafe, unsanitary and

cluttered areas on Respondents’ property. It was Mr. Mourning’s opinion that people had

clearly been preparing food and possibly living in the areas pictured. It was Mr. Mourning’s

opinion that the facility was not up to standards for producing cannabis.

22. Mr. Mourning identified Exhibit 21 as photographs of CO2 tanks that were not

properly strapped down and electrical wires that were dangerously exposed. CO2 tanks are

required to be strapped down to prevent injuries if the tanks were to fall or be knocked over.

23. At no time was any evidence presented that the Respondent had the required

Standard Operating Procedures in place or in existence.

24. On cross-examination Mr. Mourning testified that all violations on the inspection

report could be corrected or were correctable.

25. Mr. Mourning also testified that to his knowledge Respondents were licensed or

permitted to grow 20,000 plants but when he visited Respondents’ facilities Respondents

appeared to be growing 30,000 plants or 10,000 more plants than their license allowed.

CONCLUSIONS OF LAW

The Department makes these Conclusions of Law:

1. The Division has jurisdiction over Respondents and the subject matter of this

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proceeding pursuant to the Cannabis Regulation Act, NMSA 1978, §§ 26-2C-1 to -42

(2021), (“CRA”), and in particular, NMSA 1978, § 26-2C-6; NMSA 1978, § 26-2C-8; and

the Uniform Licensing Act, NMSA 1978, §§ 61-1-1 to 37 (“ULA”).

2. In New Mexico, the standard of proof applied in administrative hearings, with few

exceptions, is a preponderance of the evidence. Foster v. Board of Dentistry of State of New

Mexico, 103 N.M. 776, 714 P.2d 580 citing State Department of Motor Vehicles v. Gober,

85 N.M. 457, 513, P.2d 391; Seidenberg v. New Mexico Board of Medical Examiners, 80

N.M. 135, 452 P.2d 469 (1969).

3. The Division has the burden of proving the charges against the Respondents by a

preponderance of the evidence. See Foster v. Bd. of Dentistry, 103 N.M. 776, 777, 714

P.2d 580, 581 (1986).

4. The Division followed all the notice and hearing requirements of the ULA, and in

particular the notice and opportunity to be heard requirements at NMSA 1978, §§ 61-1-3,

Opportunity for licensee or applicant to have a hearing; 61-1-4, Notice of contemplated

board action; request for hearing; notice of hearing; and 61-1-8, Rights of persons entitled

to hearing.

5. These proceedings were held pursuant to the ULA, as invoked in NMSA 1978, § 26-

2C-8 of the Cannabis Regulation Act, and the standard of evidence required under the ULA

is “the hearing office may admit any evidence and may give probative effect to evidence

that is of a kind commonly relied on by reasonably prudent people in the conduct of serious

affairs”, NMSA 1978, § 61-1-11(A).

6. Respondent appeared at the hearing pursuant to the Request for Hearing submitted to

the Division as offered in the Notice of Contemplated Action.

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7. The Division finds that based on the Exhibits admitted, including Exhibits 7 and 25 both

of which were admitted without objection, and the testimony at the hearing that the

Division has proven by a preponderance of the evidence the following violations of the Act

and the NMAC:

a) Non-compliance with Local and State Laws in violation of 16.8.2.8 (A) NMAC;

b) No Usage of Required Track and Trace Software in violation of 16.8.2.8 (J)

NMAC for a period of at least 17 months for all 30,000 plants on-site;

c) Improper Record of Testing in violation of 16.8.2.40 (G)(1)(d) NMAC;

d) Improper Security and Limited Access Requirements in violation of 16.8.2.10

NMAC;

e) Improper Safety and Health Requirements in violation of 16.8.2.27 (F) NMAC;

f) Non-Operational Digital Surveillance System in violation of 16.8.2.10 (D)-(G)

NMAC;

g) No Cultivation Plan in violation of 16.8.2.27 (B) NMAC;

h) No Lighting Diagram in violation of 16.8.2.27 (C) NMAC;

i) Improper Chain of Custody Procedures in violation of 16.8.2.12 NMAC;

j) No Employee Training Materials Onsite in violation of 16.8.2.26 (B)(1) NMAC;

k) No Employee Food Handler’s Cards in violation of 16.8.2.26 (B)(2) NMAC;

l) No Recall Plan Onsite in violation of 16.8.2.11 NMAC;

m) No Remediation Plan Onsite in violation 16.8.2.26 NMAC;

n) No Cannabis Wastage Plan Onsite in violation of 16.8.2.27 (E) NMAC; and

o) No Required Scales Onsite in violation of 16.8.2.27 (A)(4) NMAC.

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The Division also finds that the Respondents have not presented any evidence to rebut nor

sufficiently explain any of the violations cited above and the Division may, therefore, impose any

sanctions on Respondents authorized by NMSA1978 §26-2C-8(B) and 16.8.12.11(A) including

assessing civil fines and or suspending or revoking Respondents’ licenses.

ORDER

Based on these Findings of Fact and Conclusions of Law, the determination is made that

Respondent’s Licenses CCD-2023-0138; CCD-VICE-2023-0040; and CCD-VICE-2022-0061

shall be REVOKED, effective from receipt of this order via certified mail, and a civil monetary

FINE will be imposed in accordance with 16.8.12.13(B) NMAC taking into consideration each

instance of rule violation, including the 30,000 untracked cannabis plants. The total fine shall be

one million dollars ($1,000,000.00). The fine shall be due to the Division no more than ninety

(90) calendar days from receipt of this order via certified mail.

IT IS FURTHER ORDERED that the Respondent must comply with the following
conditions:

A. Respondent shall immediately waste all cannabis and cannabis product on-site
and all cannabis and cannabis product that originated on site.

B. Respondent shall immediately cease all commercial cannabis activity defined


by the Act, except as necessary to waste all cannabis and cannabis product.

C. No later than the date of revocation, Respondent shall surrender their licenses
by certified mail to the Division. All certified mail shall be sent to 2550
Cerrillos Rd., P.O. Box 25101, Santa Fe, NM 87504, ATTN: Cannabis
Control Division. All email correspondence shall be sent to Division Counsel,
Robert Sachs at Robert.Sachs@rld.nm.gov.

D. This Order constitutes a final decision for purposes of initiating any


contemplated judicial review pursuant to the provision of the Uniform
Licensing Act, NMSA 1978 61-1-17 and NMSA 1978, 39.3-1.1. An
aggrieved party has the right to judicial review of this Order by filing a notice
of appeal under Rule 1-074 NMRA within thirty (30) days of the date of filing
the final decision. All pleadings filed with the district court must be served on
the Division’s counsel, Robert Sachs at 1209 Camino Carlos Rey, Santa Fe,

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NM 87505, ATTN: Cannabis Control Division, and electronically via email at
Robert.Sachs@rld.nm.gov.

IT IS FURTHER ORDERED that failure to comply with the terms of this Order may result
in additional disciplinary action. If Respondent’s non-compliance constitutes acts
that are prohibited under the Department’s statute or rules, the Department may
initiate a new disciplinary action and refer that matter for administrative
prosecution, seek an injunction in District Court, or pursue other remedies as
provided by law.

IT IS SO ORDERED.

12/26/2023
/s/ _____________ __ _______________

Superintendent Clay Bailey Date


New Mexico Regulation and Licensing Department

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JUDICIAL REVIEW

This Order constitutes a final decision for purposes of initiating any contemplated judicial review
pursuant to the provisions of the Uniform Licensing Act, 61-1-17 NMSA 1978, and 39-3-1.1
NMSA 1978. An aggrieved party has the right to judicial review of this Order by filing a notice of
appeal under Rule 1-074 NMRA within thirty (30) days of the date of filing of the final decision.
Any pleadings filed with the district court must be served on the Division counsel Robert Sachs at
1209 Camino Carlos Rey, Santa Fe, NM 87505, ATTN: Cannabis Control Division, and
electronically via email at Robert.Sachs@rld.nm.gov.

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